Is your car dropping to bits and held together with sticky tape? Is your washing machine making all sorts of noises and leaking uncontrollably? If so, you are not alone – in fact, you’re probably one of the many people who have recently admitted to being so strapped for cash that they have had to put off purchasing new essential items so they don’t get themselves into a financial mess.
Only a few weeks ago, we wrote an article detailing how people are far too quick to carry on spending on the plastic despite not having the safe and relevant means to properly pay for items. Clothes shopping and restaurants seem to be the biggest culprit when it comes to eating into people’s finances, but it appears that when it comes to items that are very pricey, but necessary, people are too scared to take the plunge. Figures show that car purchases are down by a considerable margin for example, as are utility items such as fridge/freezers, washing machines and dishwashers – it appears that people are simply ‘making do’ with what they have because they are too frightened to spend a vast some of cash.
The problem with this mindset is that if an item is getting towards the end of its lifespan, sooner or later, it is going to completely stop working and something is going to have to be done about getting a replacement. Whether it is now or in a few months’ time, money will have to be spent.
With this in mind, if people are seriously concerned about being able to afford necessary items like this, they should start putting money aside regularly in the form of a contingency pot. It doesn’t have to be much – maybe just £20 a month – and that should see a bit of money being built up for scenarios cropping up.
It’s a bit like a savings account but is designed to give you a safety net should anything go wrong.
We always advise people to put money away for things like this, but unfortunately not many people pay much attention to this advice.
Doing it this way, however, could be the difference between managing month to month with unfortunate scenarios occurring and, not.